Orea Mining Corp. (OTCQX:OREAF) has been quickly climbing the gold stocks list and making headlines recently for their court case with the French government. With the government’s failure to submit an appeal, OREAF’s mining site is on its way to becoming fully operational, with billions in store for the future.

The company is French Guiana’s leading gold exploration and development company with a portfolio of high-quality projects in a prospective and underexplored segment of the Guiana Shield, South America. OREAF Stock hit its 52-week high this month at $0.2372, currently trading at $0.1949 making it a worthy candidate on investors’ gold stocks list.

Catalysts

Back in 2018, OREAF was denied permits by the French government to move forward with their projects, leading their stock price to tank. After conducting over two years worth of technical and environmental studies, they got a court ruling in their favor in December 2020. The deadline for the French government to file an appeal has just passed this month, making the court ruling indisputable.

Their project in French Guiana – the Montagne d’Or Project – has been recently updated to fit a more environmentally sustainable scheme. Their new modifications have achieved ground-breaking reductions in their environmental impact. According to their update, they installed a solar-power plant on -site that would reduce CO2 emissions by 80%. They also redesigned their access roads to further reduce transportation-related emissions. Through some changes to their on-site operations they have also reduced the occupancy of the surrounding forests by 32%. These modifications, and many more, come at an extremely crucial point in public debate about climate change.

A more indirect catalyst is more related to the company’s makeup. As it stands, the Montagne d’Or project is a joint venture between OREAF (holding 44.99%) and Nordgold (holding 55.01%). Nordgold is a multi-billion dollar Russian company, run by one of Russia’s richest men, Alexey Mordashov, and is operating at a $2 billion annual revenue. In addition to over 50% ownership of the mine, they also have a stake in OREAF as a company of about 8%.

There was news of Nordgold planning to perform an IPO, however, just before the final court ruling they cancelled those plans. Investors are speculating that this could be a hint at two possible scenarios. Either Nordgold buys out OREAF completely, or they perform a reverse merger into the company. These scenarios are especially compelling because Nordgold has a history of buying companies. Their director of strategy and corporate development, Oleg Pelevin, is also on the board of directors of OREAF.

OREAF’s financials show $40 million worth of assets, with no debt. The company is also owned by other multi-billion dollar businesses, including Iamgold and Sandstorm, making it especially appealing to potential buy-outs by companies like Nordgold. Currently, OREAF has a market cap of $3.98 million, with unlimited authorized shares, with 183 million shares in public float.

Media Sentiment

@haadtrading is one the investors that sees the potential in OREAF. Everyone waits in anticipation of the good news soon!

Technical Analysis

gold stocks list OREAF chart

OREAF has been witnessing an exceptional upward trend as of September, peaking at its highest point in years at $0.2372. The current value of the stock is $0.1949, with a support line at $0.1861 and a secondary support at $0.1741. Accumulation has mirrored the same upward trend. However, the MACD has recently experienced a bearish crossover on September 27th. The RSI has recently dipped to as low as 33.87, however is showing signs of recovery, and it makes the gold stocks list to watch out for.

Should You Buy?

Despite the negative indicators, the recent updates of OREAF can pose a chance of a turnaround. The news of the final court ruling with no possibility of appeal is the biggest catalyst that would make OREAF a positive investment on the gold stocks list. Their recent moves on environmental sustainability would make them more in touch which today’s values on saving the planet from climate change. Furthermore, with building speculation around a merger with a company like Nordgold, would only add to the company’s value. This makes many investors bullish to the point of predicting the stock value to surpass the value of $1.

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